OT: Homeowners Ins.

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Little brick bungalow in midwest US, quiet neighborhood, 100% garden-variety HO policy.
I've had 2 vehicles and the house insured with State Farm for 10+ years. Never had an at-fault claim against them. No unusual weather damage in this area, no act-of-God carnage, etc. Nothing at all to suggest major increases.
State Farm wants another 8.5% for the HO policy. So far they give no reason for an increase greater than, say, inflation rates.
Anybody else getting hit with unusual HO policy premium increases?
Thx, Will
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State Farm is way over priced here. I recently switched from SF to Safeco. Same coverage for about 1/2 the price.
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In forth:

I highly recommend you call a Hartford agent or an independent agent. I've got my home and 2 autos with them and I am very happy with my rates. They were almost half of what my policies with Liberty Mutual were
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I had Hartford too. But Harleysville cut their rates by 40%. Pays to shop around every few years or have an agent that does it for you. Hartford used to be priced much better in the past. Rates may vary by state so what is good in one place may not be in another. .
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forth:

My HO's ins went up almost 20% this year with travelers for no good reason other than they jacked the replacement value excessively. I looked around and ended up with Hartford at about the same price as the previous years travelers policy for the original replacement value.
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Welcome to Obama politics. This is your new agent, Ben Dover. Welkom to Amerika.
Insurance went from $240 to $591 a month. I could live with 8.5%.
Steve
visit my blog at http://cabgbypasssurgery.com
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Steve B wrote:

A giant corporation rips people off, and you blame that horrible "socialist" Obama? What's wrong with this picture?
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I do not care to blame citizens who own the corporations. It's the regulators and regulations that I have issue with. Issues like Frank, Raines, Dodd, et al. Licensed thieves, all.
Big Barry is partying hearty tonight with expensive music, caviar, champagne, and all. And the little guys are just happy with their subsistence checks. And all the time talking about hope and change and improving the little man's life while traipsing around doing absolutely nothing except spending money like he had it.
What's wrong with THAT picture?
Government taking over businesses. What's wrong with THAT picture?
Nothing, if you 're a lazy socialist. Too bad socialism isn't self sustaining. It stops when the government runs out of OTHER people's money.
Squat and watch, Sparky. How's that hope and change working for you? Or are you a teacher or government employee, and three castes above the unwashed rabble?
Steve
visit my blog at http://cabgbypasssurgery.com
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got issues?
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Based on the time of the post, looks like maybe an issue in a bottle.
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No, I'm actually very comfortable, and financially insulated and secure.
Steve
visit my blog at http://cabgbypasssurgery.com
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Hey, wasn't that you apologizing to BP for Obama making them pay for the oil spill?
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Hey, wasn't that you apologizing to BP for Obama making them pay for the oil spill?
Huh?
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State Farm is one of the companies that decides occasionally where it wants to do more or less business and uses the rates charged to add or delete clients, I've always suspected. They're a darn good company when it comes to claims, service and policy features, but I always felt that the premiums were more volatile than with some other companies. What people don't understand is that all insurance companies are in the business to make money. When you have disasters clear off the bell curve, like NOLA, it puts a kink in the works. Compound this with posturing and puffing politicians "demanding" coverage for non-covered events like flooding and someone has to pay. The Midwest, where I'm from, has always had flooding, tornados and an impending earthquake (New Madrid Fault) hanging over the insurance company heads.
In our troubled economy, arson can be used to get out of debt. HO premiums are based upon EXPECTED cost of rebuilding and not what it was last year. Many are fearing horrible inflation, which can increase the risk of more payout following a loss that was budgeted. Insurance Commissioners are elected officials, but generally cater to the insurance companies rather than the voters.
In the case of the fellow with the bigger premium, has he considered (with the lender's permission), increasing the deductible?
Nonny
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We live on rural property and were insured by State Farm for years. Then we got a notice that they would no longer be covering farms in Maryland. I suggested that they change their name to State No Farm but never got a response.
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news:f7c84430-0c15-493b-884e-
<stuff snipped>

Who says floods shouldn't be covered? A lot of people I know are surprised to find out what total coverage *doesn't* cover in a claim. Over the years, more and more events, conditions, and exclusions are added to homeowner's policies to the point that you really don't know what you're buying unless you're an insurance agent or attorney. You'll never hear the words "co-insurance" or "subrogation" until you file a big enough claim for a bona-fide covered event.

Once. Maybe. More like "Once Upon A Time." The insurers have pooled their claimant info so they can refuse to sell to anyone who has had a suspicious fire. Or even an unsuspicious one. Arson investigators are also dramatically better than they used to be, and have some pretty serious tools in their detection arsenal. My broker is an old high school buddy and one day, saw a can of turpentine in the basement. He looked at me and said "is having that can in here and not in the shed worth going through an arson investigation if there's ever a fire?" That's where the can's been ever since. The shed. However, as good as arson investigation is, there are cases where many believe innocent people have been executed over poorly interpreted fire scenes:
http://www.chron.com/disp/story.mpl/metropolitan/3836493.html
" . . . the Innocence Project's scientific report, headed by nationally recognized arson expert John J. Lentini, asserts that both the Willis and Willingham fires were accidental, not the product of arson. "Fire investigators in general didn't know what they were talking about, but the state of Texas did know in 2004 that the evidence used to convict them was B.S. - bad science," Lentini said at a Capitol news conference announcing the study which asserts "each and every" indicator of arson cited in the two cases has been proven to be invalid."
I believe they are referring to pools of hydrocarbon-based material investigators said was accelerant but was really material that condensed out of a burning cloud of plastic fumes. Lots of arson investigation "rules" were laid down when everything was made out of cotton and wood, not plastic and "wood-like" substances. More recent tests show that what were previously thought to be accelerant indicators are actually by-products of a fire in a modern home furnished largely with man-made materials.

While I agree that many IC's are tools, I thought most insurance commissioners were appointees, not elected officials:
http://goliath.ecnext.com/coms2/gi_0199-3861902/Elected-REGULATORS-A-dozen-states.html
Not that it matters much. Companies fare pretty much the same under either type of IC, they say.
<<We live on rural property and were insured by State Farm for years. Then we got a notice that they would no longer be covering farms in Maryland. I suggested that they change their name to State No Farm but never got a response.>>
That's because you didn't send it around to the newspapers and TV stations around the area who would love to do a story about how "State FARM" sure doesn't mean a farm in the state of Maryland. In this age where Lindsay Lohan's DUI makes the front page, a story like that has a shot at the title. I wonder why the change, though. Usually, when an insurer exits a line of business, they've got a government regulation all lined up as the fall guy.
Eventually, redlining certain states or areas will end in all insurers being regulated at the Federal level, something many businesses (except insurers) seem keen on so they have only one set of laws/regulators to deal with, not 50. That's why we have Senators. If enough insurers pull out of enough states enough times, the axe will fall. Sadly, it will be the only way to fairly share the risks living in each of the 50 states among everyone. Is it fair? Should hurricane belt dwellers pay more? What about quake-vulnerable California?
Insurers, left on their own, would only insurer people who never make claims or got sick. I think they like the state-by-state patchwork regulation system just fine. It's there just in case the policy itself wasn't confusing enough. (-: I'm of the mind that they can fool state commissioners on a one-off basis more easily than a qualified federal administrator.
Apparently some insurers almost got away with pulling the wool over the California IC's eyes. The rollback of health insurance rates came from a threat of a federal probe into the rate hikes, some as high as 39%. What balls. What, in the health care industry, has gone up so much in one year that they needed a hike that high to cover it? They f_(ked up. The hike didn't even past the smell test.
It will take an enormous, multi-state disaster affecting rich folks with clout to get the change from state to federal regulation of the insurance industry, but it's coming. AIG got the ball rolling with trying to insured CDO's and getting FUTA. A Cat 5 hurricane that hits a place where rich, politically active people lived finish the job as they were flooding by claims that could easily top any other natural disaster in the world
http://www.insure.com/articles/homeinsurance/hurricane-strike.html
They estimate it's possible for the industry to face $100 billon in claims. It's going to happen just based on the law of probability. Anywhere on the US east coast and the entire Gulf coast comprise the targets, so it's really just a matter of time. Don't worry, though. Bill Gates is coming to the hurricane threat rescue:
http://www.wunderground.com/blog/JeffMasters/comment.html?entrynum 65&tstamp As for California, health insurers demanded a big fat premium raise based on doublecounting and other faulty math techniques. Makes you wonder how many don't get caught at jiggering the numbers . . .
http://www.usatoday.com/money/industries/insurance/2010-04-29-anthem-blue-cross-rate-hike_N.htm
-- Bobby G.
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they don't care about earthquakes. I don't know of any insurers that don't specifically exclude quakes. The two most important things in setting premiums is recent losses (they have to make them back) and the economy. If they are making money off their investments they can play fast and loose with the underwriting and go for market share. When that goes away and they actually have to make their money on insuring things, then the rates head north again.

tend to ignore the laws of economics.
--
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http://en.wikipedia.org/wiki/State_Farm_Insurance "... The group's main business is State Farm Mutual Automobile Insurance Company, a mutual insurance firm that also owns the other State Farm companies. ..."
http://en.wikipedia.org/wiki/Mutual_insurance " ... A Mutual insurance company is an insurance company which has no shareholders but instead is owned entirely by its policyholders ..."

I doubt the pols have that much to do with it.
The Midwest US hasn't seen unusual HO claims in recent times.

Ceteris paribus, next years expectation is more-or-less this years outlays.

You mean the state commishes? In MO, they are lock-stock-and-barrel in the hip pockets of the ins. co's, to my knowledge.

There's no mortgage/lender. Request for quotes with larger deductable is in the hands of the SF agent. Presumably he'll get back to me.
Thanks for numerous helpful responses.
Will
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wrote:

Very true. In the case of a Mutual, profit (such as premium + investment income > outlay + fixed costs + variable costs) equates to reduced premiums. . . in theory at least. We won't go into reserves. <grin>

I wonder if there's any premium loading because of New Madrid?

I had a classmate who worked for the Commish years back. What part of MO are you from? Another of my classmates is in the process of helping Ike Skelton to join the unemployed. <grin>
Nonny
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Madrid was primed to go. Most of the newies at the time reminded people that earthquake coverage is specifically excluded from every insurance contract.
So, I would guess no.
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and name it after the IRS.
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